Title: Argentine Industrialist Javier Madanes Sounds Alarm on Shrinking Currency Gap, Plans Major Eolic Project
Javier Madanes, the controlling shareholder of aluminum producer Aluar and food company Fate, has spoken out about the current state of the Argentine industrial sector. Notably, Madanes expressed unease at the narrowing gap between official and parallel market exchange rates, stating, "having a contado con liquidación rate so close to the official rate is uncomfortable. Some are even suggesting a scenario where they could be forced to sell dollars at a loss."
In response to Madanes’ remarks, Deputy José Luis Espert, who also chairs the Budget and Taxation Commission in the Chamber of Deputies, criticized the entrepreneur, quoting him as saying, "two nonsense statements: that the currency exchange controls will last, while the Central Bank eliminates regulations daily, and that the disappearance of the currency gap is worrisome, when it’s desirable."
The debate comes as the brecha cambiaria, or currency gap, between the CCL (Contado con Liquidación) and the type of change minorista is currently at 14.5%. Economic consulting firm Ecolatina predicts that by the first quarter of 2025, the key factor will be the financial account, which should not pose an issue if counterbalanced by an increase in dollar loans, RIGI inflow, or a new IMF program that allows fresh funds.
Madanes also lamented the falling image of the industrial sector, stating, "it’s unfair, cruel, and unnecessary to label it as prebendary and ‘caging’ in the zoology." He added that the tire industry has lost 30% of its jobs over the year.
In terms of investments, Madanes revealed plans to invest $400 million to create Argentina’s largest wind farm, underscoring his optimistic outlook despite the sector’s challenges.
While the dollar turista is trading at ARS 1391.53, the MEP or "Bolsa" is at ARS 1165.09, and the CCL or contado con liquidación rate is at ARS 1185.58, the official dollar remains stable. As the conversation surrounding Argentina’s economic landscape continues, Madanes’ concerns highlight the complex dynamics at play in the country’s industrial sector and currency market.
